CMS Energy Corporation
) announced first-quarter 2013 earnings per share of 53 cents on
both adjusted and GAAP basis, beating the Zacks Consensus
Estimate of 46 cents. Earnings were 43.2% higher than 37 cents
earned in the year-ago quarter.
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A colder-than-normal weather spiked natural gas deliveries,
driving better-than-expected results in the reported quarter.
Operating revenues of CMS Energy in the quarter under review
grossed $1.98 billion, up 13.5% year over year. Results were
better than the Zacks Consensus Estimate of $1.85 billion.
Operating expense in the quarter rose 6% year over year to $1.65
The magnitude of increase in revenues more than offset the
magnitude of increase in expense, thereby providing a 75% surge
in operating income in the reported quarter.
Net income of CMS Energy more than doubled to $144 million in the
CMS Energy ended the first quarter with cash and cash equivalents
of $586 million, surging from $93 million at the end of full year
2012. Total debt, capital and finance leases rose to $7.50
billion, up 1.6% from 2012 end level. The company generated cash
flow from operations of $725 million, up 14.2% year over year.
Consumers Energy, principal subsidiary of CMS Energy's principal
subsidiary, intends to invest about $7 billion in its operations
through 2017. This in turn will also aid in creating jobs in
The company has also inked $600 million multi-year contracts with
other Mich. businesses as a part of its Pure Michigan Business
Connect commitment. These contracts are in addition to the $2.4
billion annual spending agreement by Consumers Energy with Mich.
The company lowered natural gas fuel prices by about 15%, which
supported its increment in investments to strengthen and expand
its natural gas system. It intends to invest $160 million over
the next five years on new gas customers, who elect to switch
from other fuel sources.
CMS Energy affirmed its guidance for full year 2013 adjusted
earnings in the range of $1.63-$1.66 per share. This is
consistent with the company's long-term plan of 5%-7% annual
Other Stocks to Consider
CMS Energy carries a Zacks Rank #3 (Hold). Other stocks to
Brookfield Infrastructure Partners L.P
Pike Electric Corporation
Huaneng Power International, Inc
) , all carrying a Zacks Rank #1 (Strong Buy).